How Does A Probate Sale Typically Work?
If someone dies without leaving their property to someone else, their property may wind up in the hands of the state. From there, the property will be sold in probate court. While probate laws aren't the same in every state, this is how probate sales usually work.
How Probate Sales Are Marketed?
You may not notice that a property is probate sale when you're looking at listings. In the majority of cases, the probate court will simply hand marketing duties over to a professional real estate agent. If you would prefer to avoid probate sales, you'll want to look closely at property listings. Read over listings; don't just glance at them.
Making An Offer On A Probate Sale Property
With probate sale, you can't just put in an offer and call it a day. You need to include a 10% deposit with your offer.
Because your offer has to be confirmed by the court, you need to demonstrate that you are serious about buying this home. After your offer has been submitted, the real estate agent has the option of countering your offer. Once the offer has been accepted by the seller, the representative of the estate will petition the court to confirm the sale.
It's important to remember that an offer can be rejected in court even if the seller has accepted it.
How Long Does A Probate Sale Take?
If you're planning on buying a home quickly, you'll probably want to avoid properties that are being sold through probate court. As mentioned above, this process can take an extremely long time.
Look at your state's laws so that you can see what you should expect.
What You Should Know About Your Deposit?
A lot of people assume that the deposit that has to be submitted alongside an offer is refundable. Although that's true in some cases, it isn't true in every situation. In some areas, the deposit won't be refundable unless someone other than the original buyer is the confirmed court buyer.
If you're not willing to lose your deposit, you should avoid putting in an offer on a probate sale. While probate sales may allow you to buy an excellent property for a fantastic price, that sale comes with certain risks.
Have The Property Inspected Before You Make Your Offer
That's why you should have the property inspected before you make your offer. While you'll have to pay for the cost of the inspection out of your own pocket, you'll gain valuable information that will help you to figure out what you should do next.
You shouldn't assume that a property is in excellent condition. You should always have it inspected first.
Not All Assets Have To Go Through Probate
A lot of people assume that assets have to go through probate. However, different states typically have different probate laws. Depending on your circumstances, the assets you're dealing with may not have to go through probate at all.
If you're working with a property that has two legal tenants, going through probate isn't necessary. The surviving party will automatically gain the asset. The same thing is true for married couples; the spouse of the deceased should automatically receive the property unless otherwise specified. A piece of property that specified beneficiary may also be able to avoid probate.
If you're dealing with living trust assets, the best thing you can do is talk to an attorney. A probate lawyer will be able to look at your circumstances and give you some advice. They'll be able to tell you whether or not estate planning is necessary. Now that you have a better understanding of how probate sales usually work, you'll be able to put your knowledge to good use.